Corinthian Colleges, Transmeta, more

MichaelBaron

Thursday stocks to watch

Among the companies scheduled to report their quarterly results Thursday: Gillette
G, -0.59%
which is expected to show earnings of 34 cents a share by a consensus of analysts polled by Thomson First Call.

Walt Disney
DIS, -0.80%
is expected to show a profit of 15 cents a share

AOL Time Warner
AOL
on Wednesday said it had a fourth-quarter net loss after it took a $45.5 billion non-cash charge for the drop in the value in its America Online unit. Additionally, Ted Turner announced Wednesday he'll step down as vice chairman of AOL Time Warner in May. Turner, the founder of Turner Broadcasting and AOL Time Warner's largest individual shareholder, said he wants to spend more time with his philanthropic pursuits. No immediate replacement for him was named.

Chiron said Wednesday fourth-quarter profit rose to $67 million, or 35 cents per share, compared with $45 million, or 23 cents per share, in the 2001 fourth quarter. Excluding special items, the biotech firm said profit was $63 million, or 33 cents per share, which was in line with the average estimate of analysts polled by Multex. Chiron
CHIR
said revenue increased to $356.3 million from $317.9 million in the year-earlier period. Chiron shares edged up 14 cents to $38.37.

Electronic Arts
ERTS
reported net income that rose 89 percent from a year ago, as the company beat its earnings target. The No.1 maker of video games in the U.S. reported net income of $250.2 million, or $1.69 a share, up from $132.3 million, or 92 cents a share a year earlier. Analysts had been expecting earnings of $1.57 a share on average, according to Thomson First Call. Electronic Arts shares rose 20 cents to close at $50.97, ahead of the earnings announcement.

Foundry Networks said after the market closed Wednesday that its fourth-quarter net income rose to $10.5 million, or 8 cents a share, from a loss of $10.7 million, or 9 cents, in the same period a year earlier. Analysts surveyed by Thomson First Call were looking for a profit of 6 cents. Revenue rose to $86.7 million from $65.4 million; respondents to First Call had anticipated a figure of $84.3 million. Shares of the provider of networking products
FDRY
closed 17 cents higher at $9.65 on Wednesday.

Gateway
GTW
matched analysts estimates Tuesday, posting a fourth-quarter net loss of $72 million, or 22 cents a share. On a pro forma basis, Gateway's loss was 19 cents a share. Revenue totaled $1.06 billion. During the same period in 2001, Gateway reported net profit of 3 cents a share, with revenue of $1.14 billion. The company's net loss included a 3-cents-a-share loss related to a dispute between Gateway and AOL Time Warner over payments involved with America Online customers who subscribed through Gateway.

Maxim Integrated Products on Wednesday reported a higher net income for the second quarter as revenues ramped up nearly 16 percent. The maker of analog integrated circuits, used in the operation of cell phones and other electronics, recorded profits of $77.1 million, or 23 cents a share, matching the expectation of analysts polled by Thomson First Call. Last year, the companyt made $62.6 million, or 18 cents. Revenue came to $286.1 million -- analysts were expecting $286.55 million -- compared with last year's $247.1 million. Shares of Maxim
MXIM, -3.72%
were down 22 cents to $33 in after-hours action.

Morgan Stanley
MWD, +0.43%
chopped compensation for its staff by 30 percent at the end of 2002, Chief Executive Philip Purcell said Wednesday. Purcell, speaking at a Salomon Smith Barney presentation, said the 2002 reduction follows a 30 percent cut in the previous year. "We got to close [2002] by cutting everyone's compensation another 30 percent," Purcell said.

Sprint Corp.
FON, -3.57%
late Wednesday declined comment on reports that longtime Chief Executive William Esrey would be stepping down. Overland Park, Kan.-based Sprint
PCS
said it would release fourth quarter results on Feb. 5. Results are expected to be consistent with targets issued on Dec. 12, Sprint said in a statement.

Wednesday advancers

American Italian Pasta Co.
PLB, -0.47%
added almost 12 percent after the Kansas City, Mo., firm reported first-quarter earnings before items of 54 cents per share, a penny ahead of the average estimate of analysts polled by Thomson First Call. Looking ahead, the company raised its 2003 earnings outlook for $2.50 to $2.60 per share on revenue of between $440 million and $465 million. American Italian also announced its acquisition of the Golden Grain/Mission Pasta brand from PepsiCo.
PEP, -0.60%
for $43 million plus inventory. The company expects the deal to add 5 to 10 cents per share to earnings in 2003.

AtheroGenics
AGIX
gained 16 percent after the Atlanta developer of pharmaceutical treatments for chronic inflammatory diseases priced a public offering of 7.2 million shares of its common stock at $6.25 each. The deal includes an option for the sale of an additional 1.1 million shares to cover over-allotments.

BioMarin Pharmaceutical
BMRN, -2.52%
rose 16 percent after the company and its larger biotech partner Genzyme
GENZ
said Wednesday the Food and Drug Administration has backed the safety and effectiveness of the companies' treatment for a rare disease, MPS-I. The two biotech firms said that the FDA hasn't asked for any additional patient testing before granting final approval. However, the companies' announcement didn't say when the drug, called Aldurazyme, would get final clearance. The companies said they still have to work out certain issues, including final product labeling.

Career Education
CECO, -0.80%
rallied nearly 16 percent after the Hoffman Estates, Ill., educational services provider reported fourth-quarter earnings of $31 million, or 65 cents a share, up from its year-ago profit of $19.3 million, or 42 cents a share, and 6 cents ahead of the average estimate of analysts polled by Thomson First Call. Revenue jumped 42 percent in the latest three months to $219.7 million from $155.2 million in the same period a year earlier. New student starts rose 28 percent in January to 10,550. Looking ahead, Career Education sees earnings of $1.80 to $1.82 per share on revenue of between $940 million and $950 million in 2003. For the first quarter, it expects earnings of 34 to 35 cents a share.

Cognex
CGNX, -2.45%
added 17 percent in early action. After Tuesday's closing bell, the Natick, Mass., maker of machine vision products reported fourth-quarter earnings of $424,000, or a penny per share, up from its year-ago loss of $20.3 million, or 46 cents a share. Excluding items, the company earned $1.9 million, or 4 cents a share, blowing past Wall Street's consensus estimate for a profit of 2 cents a share. Revenue jumped 34 percent in the latest three months to $33.8 million from $25.2 million in the same period a year earlier. Looking ahead, Cognex sees earnings of 2 to 5 cents per share in the first quarter.

Corinthian Colleges
COCO, +0.15%
leapt more than 7 percent after the Santa Ana, Calif., educational services firm posted second-quarter earnings of $16.1 million, or 35 cents a share, 4 cents ahead of the average estimate of analysts polled by Thomson First Call. Revenue soared 56 percent in the latest three months to $127.2 million from $81.6 million in the same period a year earlier. The company attributed the strong results to operating margins topping 20 percent, steps taken to control operating expenses, and efforts to lower bad debt expenses. Student population stood at 40,057 as of Dec. 31, up 38 percent from 28,973 at the same point last year. Looking ahead, Corinthian sees earnings of 33 to 34 cents a share for the third quarter, and $1.32 to $1.34 per share for fiscal 2003.

InFocus
INFS
rose more than 14 percent after the Wilsonville, Ore., digital projection technology firm reported a pro forma loss of $2.3 million, or 6 cents a share, in the fourth quarter, down from its year-ago equivalent profit of $6.6 million, or 17 cents a share, but 3 cents narrower than the average estimate of analysts polled by Thomson First Call. Revenue fell 6 percent in the latest three months to $181.3 million from $192.4 million in the same period a year earlier. The company said that it received strong performances from its overseas and consumer/home theater markets in the quarter. Looking ahead, InFocus expects first-quarter results from operations to come in flat with its fourth-quarter performance.

Micron Technology
MU, -3.49%
rose 6 percent after the memory chip maker announced intentions to offer $500 million in convertible notes through an offering to qualified institutional buyers. The company plans to use the proceeds from the sale for general corporate purposes and to facilitate the transition to new product and process technologies. Under terms of the sale, the company said the initial purchasers of the notes are expected to take positions in Micron common stock.

Nautilus Group
NLS, -0.90%
rose more than 12 percent after the maker of health and fitness products announced an initial dividend and a stock buyback program. The company's first quarterly dividend of 10 cents a share will be payable Mar. 10 for shareholders of record on Feb. 20. "Declaring a dividend demonstrates the Board's confidence in the Company's long-term growth plans and continued strong operating cash flow," said Brian Cook, the company's chief executive. Separately, the company's board of directors have OK'd the company to repurchase up to $50 million shares of stock from Feb. 10, 2003 to June 30.

Novellus Systems'
NVLS
shares added almost 7 percent after the company reported fourth-quarter net income of $3 million, or 2 cents a share. On a pro forma basis, Novellus earned $15.5 million, or 11 cents a share to beat the estimates of Wall Street analysts by a penny. Revenue for the period ended Dec. 31 was $217.6 million. During the same period in 2001, Novellus recorded a net profit of $17.2 million, or 12 cents a share, on revenue of $200 million.

SeeBeyond Technologies'
SBYN
shares rose more than 11 percent after the company reported a fourth-quarter net loss of $11.6 million, or 14 cents a share, on revenue of $40.5 million. On a pro forma basis, SeeBeyond lost $4.8 million, or 6 cents a share to beat the estimates of analysts surveyed by Thomson First Call who forecasted a loss of 11 cents a share. During the same period in 2001, SeeBeyond had net income of $1.6 million, or 2 cents a share, on revenue of $45 million.

Transmeta
TMTA
soared more than 26 percent in late trades. DigiTimes reported that Hewlett-Packard
HPQ, -1.74%
will use Transmeta's Crusoe chip in H-P's second tablet PC. In a separate report, DigiTimes reported that more than 60 percent of Elitegroup Computer Systems' (ECS) Desknotes would be equipped with Transmeta chips. Analyst Brian Alger at Pacific Growth Equities said that if these reports were confirmed, it would drive his model of the company closer to Transmeta's target of profitability by the fourth quarter. Separately, the DigiTimes report said ECS would halt production of DeskNotes using Advanced Micro Devices
AMD, -2.30%
chips, given their low acceptance in the Asia-Pacific region.

Wednesday decliners

Borland Software
BORL
fell almost 17 percent after the company reported late Tuesday fourth quarter earnings that missed expectations and warned of a first quarter shortfall. Meanwhile, the company provided a full-year 2003 earnings outlook that was in line with expectations. First Albany followed by downgrading the stock to "neutral" from "buy," due to the "back end loaded" nature of the company's 2003 financial model, which magnifies execution risk.

Shares of Celestica
CLS, -0.35%
slumped nearly 19 percent after the provider of electronics manufacturing services reported late Tuesday fourth quarter earnings that fell shy of expectations and warned that first quarter results would also miss. Meanwhile, Analyst Joseph Wolf UBS Warburg followed by upgrading the stock to "neutral" from "reduce," citing valuation, but stopped short of recommending investors to build positions on weakness. Late Monday, the company reported December quarter earnings of 15 cents a share, and said it expected to earn 4 to 10 cents a share in the current quarter. Analysts surveyed by Thomson First Call had been expecting 16 cents for both quarters, on average.

CSG Systems
CSGS, -0.46%
dropped more than 25 percent after the Englewood, Colo., provider of customer care and billing services reported adjusted earnings of $18.4 million, or 36 cents a share, in the fourth quarter, missing the average estimate of analysts polled by Thomson First Call by a penny. In the same period a year ago, the company earned $28.7 million, or 53 cents a share, on an adjusted basis. Revenue rose 31 percent in the latest three months to $155.2 million from $118.3 million in the same period a year earlier. Looking ahead, CSG sees earnings before items of 24 to 27 cents a share on revenue of $144 million to $152 million in the first quarter, well below Wall Street's current consensus profit estimate of 38 cents a share.

Documentum
DCTM
tumbled more than 14 percent after the Pleasanton, Calif., content management software firm reported fourth-quarter earnings before items that beat Wall Street expectations but the stock received a downgrade from Investec due to valuation. The firm went to "hold" from "buy," stating that the shares have appreciated roughly 54 percent since its upgrade on Oct. 4. Otherwise, Investec said the quarterly results were "strong across the board," especially on the revenue front, where Documentum's fourth-quarter total of $66 million trumped the analysts' consensus estimate of $62.8 million.

FMC Corp.
FMC, -2.31%
plunged almost 25 percent after the company offered a weaker than anticipated outlook for 2003 due to higher year-over-year interest expense and a challenging conditions in its industrial chemicals business. The Philadelphia-based firm, which topped Wall Street expectations for its fourth-quarter results by 4 cents, sees earnings of $1.75 to $2 per share for 2003. Analysts polled by Thomson First Call were looking for profit of $2.77 per share for the year, on average. FMC said that its industrial chemicals business would suffer from increased pressure on global selling prices for phosphorous chemicals, and its own mixed success in selling price negotiations for hydrogen peroxide and soda ash.

Kraft Foods
KFT
lost nearly 14 percent after the company reported a profit of 51 cents a share, or $876 million, as the maker of Oscar Mayer, Oreos and Velveeta cheese grew worldwide volume a robust 4.3 percent. The results, however, fell a penny shy of the Multex consensus. Total revenues rose 4 percent to $7.85 billion from the year-ago period. The company warned that higher pension and stock-based compensation costs, coupled with the currency issues in Latin America, would eat into profits next year. As a result, Kraft now forecasts earnings in a range of $2.10 to $2.15 a share, as much as 15 cents below consensus.

Owens-Illinois
OI, -0.37%
slumped almost 14 percent after the Toledo, Ohio, maker of glass containers said that it expects 2003 to be "an especially challenging year" for its earnings. The company cited lower pension income due to the weakness in the stock market, and higher interest expenses as contributing factors. It didn't provide a specific outlook for the period. Analysts polled by Thomson First Call are currently looking for a profit of $2.12 per share in the period, on average. For the fourth quarter ended Dec. 31, the company earned $53.2 million, or 32 cents a share, before items, missing Wall Street's consensus estimate by 2 cents. Revenue rose to $1.4 billion in the fourth quarter from $1.37 billion in the same period a year earlier.

Photon Dynamics
PHTN
dropped nearly 16 percent after the San Jose, Calif., provider of inspection and testing systems for flat panel display makers reported first-quarter loss of $25 million, or $1.55 per share, wider than its year-ago loss of $3.4 million, or 24 cents a share. These results included a charge of $20.8 million related to impairment of goodwill and long-lived assets from its printed circuit board assembly inspection business, which Photon plans to exit. The company also recorded a charge of $1.8 million relatd to acquired in-process research and development. Revenue reached $21.7 million in the period. Bookings totaled $12 million for the quarter, below the company's expectations. Looking ahead, Photon sees a loss of $1.05 to $1.25 per share on revenue of $8 million to $10 million in the second quarter. This outlook assumes none of its ArrayChecker 3500 systems are expected for delivery in the period, and it assumes a loss of $10 million to $12 million from discontinued operations. In addition, Photon named Elwood Spedden president and CEO, replacing Vincent Sollitto, who resigned. Spedden most recently served as a vice president with KLA-Tencor
KLAC, -2.30%

RealNetworks
RNWK, -1.91%
shares fell almost 8 percent after a warning from the provider of media delivery products for the Internet. RealNetworks said after the market closed Tuesday that it foresees a loss of 2 cents to 4 cents a share in the first quarter, as the company "modestly" boosts its head count and makes further investments in subscription technology and marketing efforts. On average, analysts polled by Thomson First Call were looking for a loss of 1 cent a share. In the fourth quarter of 2002, RealNetworks lost $2.5 million, or 2 cents a share, compared to a loss of $11.8 million, or 7 cents, in the year-earlier period. The result in the latest period matched the average analyst estimate compiled by First Call. Revenue was $46.2 million, vs. $45.4 million in the prior year's December quarter. Respondents to First Call had been expecting a figure flat with the prior year's total.

Sprint
FON, -3.57%
shares lost nearly 9 percent following a report that Chief Executive William Esrey is set to step aside. The Wall Street Journal also said that Chief Operating Officer Ron LeMay, once seen as Esrey's successor, will also leave Sprint and that an outside executive will be recruited to run the company. Sprint spokesman Mark Bonavia declined comment.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information.
All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only.
Intraday data delayed at least 15 minutes or per exchange requirements.